08 January 2011
The main different is laid in the cause of each situations. In bankruptcy, the major reason is that the company is unable to pay its debt at maturity so that the creditors petition for bankruptcy in order to recoup their debt. In liquidation or wind-up, it means that the company was brought to termination. The are many grounds for liquidation, such as the company unable to pay its debt (compulsory liquidation) or its member agree to terminate its activities ( voluntary liquidation).
Please Note:
There is also a difference between "Winding-up" and "Liquidation".
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